The global market for psychedelic drug treatments and therapy is in the early stages of what looks to be a massive shift.
A growing wave of research has shown the power of psychedelics in offering effective treatments for mental health disorders such as depression, anxiety, and more.
And this comes at a time when awareness of global health issues is on the rise worldwide...and as many are recognizing that psychedelics may actually be more effective than traditional treatments at treating these issues for many sufferers.
- 350 million people across the globe are affected by some form of depression...
- $1 trillion is lost annually in global workforce productivity due to depression, mental health issues and anxiety...
- And, according to the World Health Organization, one in every four people around the world will be affected by a mental or neurological disorder at some point in their lives.
And completely apart from this rapidly-growing mental health solutions market, demand for mushrooms as a functional food is projected to continue growing at a steady pace.
Growing Mushroom Market
Projected Global Revenue 2016-2024
The global mushrooms as a functional food market is expected to reach $34.3 billion USD by 2024, growing at a compound annual growth rate (CAGR) of 8.04% from 2019-2024.
One forward-thinking company – with a unique, dual-path business model – is right now offering investors what appears to us to be the smartest way to play the rapidly-growing psychedelics market for upside potential.
This company – HAVN Life Sciences (CZSE: HAVN; OTC:HAVLF) – is working on two important fronts that each offer unique opportunities for investors looking to take advantage of this fast-moving market:
First, through its HAVN Labs division, the company is devoted to providing standardized psychedelic compound formulations for academic researchers and formulators...
And second, through its HAVN Retail division, the company is developing and bringing to market custom formulations both directly to the consumer as well as with contract manufacturing (white labeling.)
Let’s take a brief look at each of the two divisions that make up this unique, high-upside opportunity in the psychedelic space.
HAVN Life Sciences Appears Positioned to Become a Supplier of Natural Psychedelics
If you’ve devoted any time to researching or investing in the psychedelic space, you’ve likely seen that most of the companies in the industry are hoping to show that the products they’re developing offer the best potential solutions or treatments to many of the most important mental health issues.
And there’s certainly nothing wrong with that approach, as these companies are doing critically important work.
But there’s another – perhaps more efficient – angle for savvy investors to play in the psychedelic space.
Instead of looking at companies focused on the clinical model, the greater opportunity for investors may actually reside in those companies who are supplying the market in the most efficient way.
HAVN Life is a company that appears perfectly positioned to be in the supply chain of natural psychedelics to companies in an industry that is growing at a rapid pace.
The company’s HAVN Labs division is a GMP-compliant laboratory that is dedicated to the advancement and formulation of regulated and novel psychoactive compounds.
The company has secured a Health Canada exemption for its HAVN Labs facility. This exemption allows for the research and development of psychedelic compounds and the ability to conduct research in contemplation of securing its Licensed Dealer status.
It is at this facility where they are formulating the next generation of medicine using psychoactive compounds.
At the moment, there are currently no formulas standardized across clinical studies of psychedelic compounds. Those studying psychedelics in research studies or academia are focused to rely on products that are developed ad hoc for each project.
HAVN Life (CZSE: HAVN; OTC:HAVLF) now stands poised to change that.
HAVN Labs intends to provide the standardized psychedelic compound formulations for academic institutions with isolates and extractions from its facility that will be utilized for clinical trials and as APIs for products.
In addition, HAVN Life Sciences is part of a global community taking an active role in formulations and research for microdosing therapies, which have shown effectiveness in addressing mental health and performance.
Microdosing is a process whereby small doses of a psychoactive compound, typically psychedelics are used. Each dose has the benefits of the psychoactive compound without affecting your day-to-day functioning and without any of the extrasensory effects that would typically come from taking a psychedelic.
They believe that microdosing has the potential to disrupt the nutraceutical and pharmaceutical industries.
Through the company’s deep experience in natural products research and product formulation, they are developing standardized, quality-controlled microdosing formulations.
Think of the opportunity with HAVN Labs this way:
By positioning itself as a supplier of naturally-derived psilocybin to researchers and formulators, HAVN Life Sciences appears to us to be similar to a company providing software to companies in the early stages of a massive computer boom.
But, again, HAVN Labs is just one part of the company’s unique, two-division business model for capitalizing on the growth in psychedelics.
HAVN Retail Offers Custom Formulations for the Massive Consumer Wellness Market
In addition to the company’s efforts to provide researchers and formulators with a safe supply of naturally derived compounds, the company has also launched a second division.
This division – HAVN Retail – is a retail product division producing specially formulated natural health products and offers the opportunity for more immediate monetization.
The retail business is developing custom formulations that address brain health and provide the potential for robust revenues and market growth, providing exposure to a rapidly-growing natural health product market that is projected to be worth $34.3 billion US globally by 2024.
These formulations from HAVN Retail will focus on providing increased mindfulness... decreased stress & anxiety... and improved immunity.
Leveraging a highly experienced and proven management team with a recent track record of building natural health product brands, the company has already developed seven natural health formulations that are announced to soon be launching online and in stores with retail partners such as Nesters Market.
And just recently – on April 8, 2021 – the company announced that it had completed the acquisition of GCO Packaging and Manufacturing Ltd. This acquisition is expected to enhance three key elements to HAVN Life’s retail strategy by...
- Facilitating an expanded product portfolio with strong revenue generation potential...
- Expanding the company’s ability to enter new Natural Health Product categories, and...
- Reducing third-party manufacturing burden.
HAVN Life Science’s Management Team Has a Wealth of Experience in Both Science and Product Development
HAVN Life (CZSE: HAVN; OTC:HAVLF) is led by Chief Executive Officer Tim Moore, who was previously CEO of Green Growth Brands and led that company to a $1 billion market cap.
Prior to his time at Green Growth, Mr. Moore was President of Clorox Canada and COO of Synnex Canada.
Their Chief Scientific Officer Gary Leong was previously Chief Scientific Officer at Aphria from its inception in 2014. Mr. Leong established and oversaw the company’s Quality Assurance, Quality Control, Regulatory Affairs and Research and Development functions.
Dr. Ivan Casselman is HAVN Life Science’s Chief Psychedelic Officer and brings executive-level cannabis advisory experience to the company. Mr. Casselman was previously on the management team of NextLeaf during that company’s IPO and has extensive experience in nutraceutical formulation.
Executive Chairman Vic Neufeld is the former CEO of Aphria and was CEO of Jamieson Laboratories for 21 years, Canada’s largest manufacturer and distributor of natural vitamins, minerals and concentrated food supplements.
Bottom Line: HAVN Life Sciences Offers Investors Two Aspects of Exposure to the Rapidly-Growing Psychedelics Market
With the psychedelics market still in the early stages of what is projected to be a growth surge, investors are looking for the best ways to play this red-hot market.
HAVN Life appears to offer a number of significant advantages over other companies in an industry that appears to be growing at an early stage pace.
- With more than 350 million people globally affected by a form of depression – and one in every four people affected by a mental or neurological disorder at some point in their lives – the market for effective treatments is truly massive.
- As this market continues to grow, evidence is beginning to overwhelmingly show that psychedelic drugs – including psilocybin mushroom-based formulations – offer superior treatment to traditional drug therapies for many patients.
- The company’s unique, two-front approach provides exposure to what could be a significant upside as a supplier to researchers as well as the more immediate revenue potential of retail sales of Natural Health Products.
- Through its HAVN Labs division, the company is positioning itself as a supplier of naturally-derived psilocybin to researchers and formulators...essentially acting as a provider of software to a computer industry as it was at a much earlier stage.
- The company’s HAVN Retail division is a retail product division producing specially formulated natural health products with an initial product line of seven formulations ready for launch in 2021 via the company’s online presence and a number of retail partnerships.
- HAVN Life Sciences is led by a diverse management team whose experience in the science, innovation and product development gives the company an important edge over other companies in the space.
You can find more information on HAVN Life Sciences here: (CZSE: HAVN; OTC:HAVLF)
Veteran Pharma Companies Are Taking New Approaches, As Well:
The success of Spravato has also piqued the interest of Big Pharma firms. Allergan (NYSE:AGN), primarily known for its Botox branded injection, is working to create a ketamine-like injectable depression treatment called Rapastinel. The company acquired the brand when it bought out Naurex for $560 million. While the drug was undergoing testing, it has hit a few snags along the way. Namely, in its most recent round of testing, it failed to differentiate from a placebo on the primary and key secondary endpoints.
Though Rapastinel has since been discontinued, Allergan is already working on a new treatment for depression and bipolar disorder in its drug, VRAYLAR, and it’s already been approved by the FDA for testing.
While ketamine has currently captured the spotlight in the new wave of depression treatments, two other compounds, MDMA and psilocybin, have a similar impact.
MDMA, for its part, has a long and strange history dating back to 1912. It was created and patented by Merck & Co. (NYSE:MRK). Rumor has it that the company was asked to create the medicine as an appetite suppressant for German soldiers before the first World War but was shelved later due to its bizarre side effects. The rumor has since been disproven by an investigation done by Merck which discovered that the drug was developed as a potentially lifesaving blood clot agent.
Since Merck’s discovery of the chemical, however, it laid relatively dormant until the 1970s, eventually finding its way into the hands of Alexander Shulgin, a renowned chemist known for his experiments with psychedelic medication.
Canada’s Biotech Scene Is Booming
Toronto-based Field Trip Health (CSE:FTRP) is taking a three-pronged approach in their work in the transformative psychedelic medicine sector. Not only are they involved in drug development, but they’re also involved in manufacturing and run a number of treatment clinics.
Field Trip has hit the ground running. With clinics currently operating in Toronto, Los Angeles, and New York, they have plans to ramp up to 75 clinics – providing psychotherapy along with psychedelic treatments. As one of the frontrunners in this exciting new industry, investors are keeping a close eye on Field Trip.
Trillium Therapeutics Inc. (TSX:TRIL) is a specialized biotechnology company that takes a unique approach on the industry, harnessing insights from nature to develop novel immunotherapies to treat cancer. Trillium’s products tackle such diseases as lymphoma and myeloma and other blood cancers.
Though Trillium is still young compared to some of its peers, the company has already carved out a name for itself in this industry. Though Trillium has faced some resistence this year, the company still has a ton of potential, and lots of exciting new developments in its pipeline.
Oncolytics Biotech Inc. (TSX:ONC) is another Canadian biotech firm. The company got it start from a major series of discoveries based out of the University of Calgary and has grown significantly over the past two decades. Onoclytics’ primary product is REOLYSIN, a first-in-class, systemically administered, immuno-oncolytic virus created with the potential to act as a therapy for cancer patients.
OrganiGram Holdings (TSX:OGI) is another Canadian holdings company looking to take the burgeoning cannabis and wellness industry by the horns. OrganiGram has quickly risen to the ranks of Canadian cannabis royalty, with operations across the country from Saskatchewan to British Columbia.
In addition to its in-person sales strategy, OrganiGram also offers another unique method of distribution. Online and over-the-phone options. More than that, however, OrganiGram and its partners know how to manage the surging Canadian demand, and that will be an essential trait as medical and recreational marijuana continues to grow.
Emblem Corp. (TSX.V: EMC) is another cannabis producer transforming the wellness industry. With a number of cannabis-based products, Emblem works closely with the medical community to ensure both patients and physicians have the information necessary to make decisions regarding treatments involving marijuana. That’s key in keeping the industry professional and in the good books of regulators.
Emblem is even on the forefront of innovation in the sector. Recently, the company completed testing on a new oral extended release product with partner Canntab Therapeutics. The product could be a welcome addition to a patients’ treatment regime thanks to its ability to medicate for a longer period of time.
By. Chuck Smith
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the global wellness market will continue to increase and that demand for mushroom based supplements and nutraceuticals will grow; that the market for psychedelic mushrooms will continue to increase for research purposes focused on alternative mental health treatments; that psychedelics will gain regulatory, medical, commercial and social acceptance as a potential treatment for various mental and other illnesses; that HAVN can be a supplier of functional and psychedelic mushroom products; that HAVN can be a leader in scientific research and achieve a new standard in naturally derived psilocybin; that HAVN can successfully build out supply agreements with researchers and obtain supply agreements to create commercialized products; that HAVN will develop fungi-based nutraceutical products for the wellness market that will achieve Health Canada approval and be sold on e-commerce sites and by retailers; that HAVN can produce products using specialized extracts which have a greater therapeutic effect for patients; that psychedelic mushrooms will be decriminalized and gain acceptance as a viable medical treatment for mental illness; that HAVN will develop a state-of-the-art research lab and become a supplier for the psychedelic and functional mushroom markets; and that HAVN can carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that the global wellness market may not increase as anticipated and that demand for supplements, and in particular mushroom based supplements and nutraceutical based products may not increase; that the market for psychedelic mushrooms does not increase; that psychedelic mushroom based treatments are found to be dangerous, ineffective or have unwanted side effects; that psychedelics will fail to gain regulatory, medical, commercial and social acceptance as a potential treatment for various mental and other illnesses; that HAVN may be unable to develop its business as a supplier of functional and psychedelic mushroom products; that HAVN may fail to become a leader in scientific research or achieve a new standard in naturally derived psilocybin; that HAVN may fail to achieve supply agreements with researches or obtain supply agreements to create any additional commercialized products; even if they do successfully produce products, competitors may offer better and cheaper products; that HAVN’s products may prove not effective; and that its intellectual property may be challenged as infringing on others’ IP. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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